Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Federal Open Market Committee meeting and mortgage purchase applications.

  • Mortgage applications declined 5.9 percent for the week ending June 17.
  • The Purchase index decreased 2.8 percent from the previous week, indicating continued weakness in the housing markets.
  • Refinancing activity declined 7.2 percent from the prior week.  Mortgage rates on a 30-year fixed mortgage increased from 4.51 percent to 4.57 percent during the week.
  • The index does not account for cash purchases, which have been around 30 percent over the past months.
  • The Federal Reserve’s Federal Open Market Committee meeting today concluded with a soft view of the economy.
  • The FOMC found weak employment, higher food and energy prices and remaining fall-out from the Japanese nuclear disaster.
  • The committee expects inflation to remain stable in the long term, but will continue monitoring it. At the same time, the committee will finalize QE2 this month through the purchase of $600 billion of Treasury securities.